PayPal Files Patent for Fast Bitcoin Transactions

If a recent patent filing is any indication, Paypal Inc. (PYPL) is planning a new system that will make cryptocurrency transactions faster.

The payments processing company is one of a slew of companies hustling to file new patents related to bitcoin and other digital currencies. Its application, filed with the U.S. Patent and Trademark Office, is for an “expedited virtual currency transaction system.”

The last time PayPal filed a patent related to the likes of bitcoin, litecoin and dogecoin was two years ago, when it wanted a platform that accepted the currencies.

What does PayPal want with Bitcoin?

PayPal says it wants to improve user experience and better compete against fiat credit card payments. Right now, its users experience a delay between the start of the transaction and when it is confirmed, with about a 10-minute waiting period being common. (See also: eBay May Be Better Off Without PayPal: Wells Fargo.)

“In many transaction situations, a 10-minute wait time will be too long for payers and/or payees, and those payers and/or payees will instead choose to perform the transaction using traditional payment methods rather than virtual currency,” PayPal said in the filing. “Issues like this have slowed the adoption of virtual currencies despite their advantages. Thus, there is a need for an expedited virtual currency transaction system.” (See also: Blockchain Could Make You – Not Equifax – the Owner of Your Data.)

Via the system described in the filing, a transaction is made with the primary wallet private key to move to several secondary wallets. With a transfer, the second user gets a subset of the first user’s secondary private keys.

PayPal shares are up more than 84 percent in the past year, including a 6 percent gain in the past month.

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